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Senior Contributor

Re: WARNING WARNING WARNING

Hi Hobby love your posts. What happens to the price of gas at 5%? Will the oil companies still want ethanol to top off the octane or will they go to the expense to further refine the crude? Our industries are tied together more than people think.

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Honored Advisor

Re: WARNING WARNING WARNING

I do not have all the answers you requested.

 

Thanks for the kind words though.

 

I was talking to a Farmer from out in the desert of NW KS a little while ago and he is like us with more ?'s than answers.

 

Many of the ethanol plants are in or are putting up facilities for co-production of many other things along with fuel. There is the obvious Distillers grains but many are taking out the germ and the oil too. Some as the one Ray Jenkins manages, sells fuel almost as a by-product as they have a real laundry list of things coming out of that plant.

 

The shuttering of ethanol plants also shuts down the distillers stream of animal feed and will have to be picked up with more corn or equiv. AND soy meal etc. Or the livestock industry will vaporize. Only able to withstand so much red ink before joining the next Wal-Mart greeters school class.

 

There will now be all the unintended consequences. The fuel from most 10% is 89 octane, regular gas is 87 so half as much alcohol will not be that big a deal.

 

Just to prove my point about not having all the answers I sold corn Monday and Tuesday and beans 40 minutes before the close today and the price has moved higher since every one of those sales. BUT I still have some more just not as much as before. Bird in the hand thing.

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Senior Advisor

Re: WARNING WARNING WARNING

What? Is anybody going to chastize Hobby for selling that load of beans too soon? DFoes that make him a (gasp) bear?

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Honored Advisor

Re: WARNING WARNING WARNING

No Kraft,  you and I did the same.  We all either did too much or too little.

 

If you say you didn't-----I will say "what were you thinking??"

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